Saturday, April 20, 2013

You have credit card debt. Now what?

1) Be responsible - It doesn't matter who you blame. It really doesn't matter how, when or why you got in debt. If you really want to get out of it, don't make excuses, even if they are really good excuses. Just because you blame a person/circumstance/event, it doesn't mean the bank will stop charging you interest and penalties and eating up your income. 2) Get serious! - The longer you wait, the worse it will become. This is not like a diet you will always start that eternal and mythical "next Monday". Start today and get it over it. Don't just say you will, make a plan and stick with it. If you can make it automated, more power to you. For example, have the amount automatically deducted from your bank account at regular intervals, plus freeze the card in a bowl of Jell-O so you don't feel tempted to continue to use it as you pay it down.
3) Know how bad it is - Don't sugarcoat it. Don't turn a blind eye. This is one of the most scary parts because my parents refuse to acknowledge how bad things really are. They're paying over $200 in just interest every month. If you don't think this is enough to care, can you tell me what you would do if I gave you $200/mo? Is that not a worthwhile cause? If not, then break down your hourly wage... is debt worth 20hrs/mo of your time?
4) Know what sort of help is available - Though the task can be daunting, where there's a will, there's a way. You don't need a professional, but don't think you're alone and can't handle it. Many are or have walked on your shoes. If you're reading this, then you're familiar with blogs. Don't be afraid to ask for help! Many people know tons about finances, and wouldn't hesitate to help out. Also, be inspired; many people in much, much worse situations have done things we can only dream of. Be one of them.
5) Keep up the good fight - You're fighting for you on this one. So don't give up on yourself! You don't have to pay $600 to debt forever. Trust me, you do not. And you will feel so much better when you're funneling these funds to your own dream vacation/car/home/project.

4 comments:

I totally agree! It can be really hard to get out of debt --- which is one thing I'm working really hard on. I had to sit back and really analyze WHY I got there. Honestly, half the things I put on the card to GET into debt I would likely do again if I had to! I'm just trying really hard to get to the point where I don't have to go into debt to be able to do those again. The other half -- well that is where the trying really hard and being conscious about spending comes in.

With credit card debt people need to put everything they can towards it to pay it down fast! Otherwise we carry it around with us forever! Like your parents! It's a slippery slope and hard to get off of it.

I absolutely agree! Once you’re in debt, settle it as early as possible before all your other expenses come in and pile up. Most of the time, I prefer to pay cash and not use my credit card in paying for food and other commodities. It'll be much easier to save some money and refrain from getting credit card debts. Jaden Allred